Council votes to continue Off the Streets program and operate at Windmir while Sun Air remains under review

The City Council on May 21 directed staff to continue the Off the Streets emergency shelter and diversion program and, for the near term, to operate it at the Windmir hotel while the city pursues additional funding options and Treasury guidance for the city-owned Sun Air facility.

The decision followed an extended presentation and questions from staff about program capacity, sources of one-time bridge funding (HOME-ARP and ARPA interest income) and a pending Arizona Department of Housing grant application that Mercy House applied for on behalf of the program. Staff said Sun Air has a certificate of occupancy and that Mercy House has applied for an up-to-$1 million grant to support property maintenance and operations at that location; however, staff also said nonprofit respondents to the city's request for information generally required significant city funding to run the program.

Council debate focused on two competing frames:

- Councilmember Duff urged using the Sun Air property because it is city-owned, designed for families, has a playground and food pantry and is ready for occupancy with a qualified provider in place. "We have a building. We have a provider. We have the funding. All we need is the will," Duff said, and she emphasized Sun Air's family-oriented design and recent program outcomes involving children, seniors and domestic violence survivors.

- Councilmember Adams and other members argued the council should not bind future taxpayers to an ongoing operational commitment that the public had not been asked to approve, and they questioned the difference between the property's purchase/renovation costs and its current appraisal. Adams said the process set a troubling precedent: "Taxpayers are being committed to a permanent financial obligation without ever being asked for consent." He said he would not support Sun Air.

Police representatives told council the program gives officers alternatives to enforcement and supports stabilization of people they encounter on patrol. Lieutenant Dennis Thomas said Chief Butler supports continuing Off the Streets because it provides options beyond citations or arrests.

After discussion, a majority of council members instructed staff to continue the Off the Streets program and to operate it at Windmir as an interim location; Sun Air was deferred for further legal, funding and Treasury-review work. Staff will pursue options including additional federal/state grants, the creation of a 501(c)(3) to increase grant eligibility, and corporate or philanthropic fundraising to reduce long-term reliance on local general fund dollars.

Next steps: staff will report back on Treasury guidance for ARPA/HOME-ARP uses at Sun Air, present options for operating or divesting the city-owned facility, continue to pursue grant funds and return to council with updates during the bridge-funding period.